DM will ALWAYS prompt for a password if one is set on the device.
You only have 10 attempts before the device wipes itself, normally on the device if you enter the password incorrect 5 times it will ask you to type blackberry. I believe it does this again at the 8th attempt and on the 10th attempt it will warn you that this is your last attempt. I am not sure if this is the case on DM or not.
The EA password most likely expired. They expire after a set amount of time and that time could vary depending on what the BES admin decided.
Your wife will need to contact her BES admin and get another EA password.
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